[Congressional Record Volume 143, Number 84 (Tuesday, June 17, 1997)]
[House]
[Pages H3820-H3822]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 EXTENDING CERTAIN PRIVILEGES, EXEMPTIONS, AND IMMUNITIES TO HONG KONG 
                       ECONOMIC AND TRADE OFFICES

  Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 342) to extend certain privileges, exemptions, and 
immunities to Hong Kong economic and trade offices.
  The Clerk read as follows:

                                 S. 342

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXTENSION OF CERTAIN PRIVILEGES, EXEMPTIONS, AND 
                   IMMUNITIES TO HONG KONG ECONOMIC AND TRADE 
                   OFFICES.

       (a) Application of International Organizations Immunities 
     Act.--The provisions of the International Organizations 
     Immunities Act (22 U.S.C. 288 et seq.) may be extended to the 
     Hong Kong Economic and Trade Offices in the same manner, to 
     the same extent, and subject to the same conditions as such 
     provisions may be extended to a public international 
     organization in which the United States participates pursuant 
     to any treaty or under the authority of any Act of Congress 
     authorizing such participation or making an appropriation for 
     such participation.
       (b) Application of International Agreement on Certain State 
     and Local Taxation.--The President is authorized to apply the 
     provisions of Article I of the Agreement on State and Local 
     Taxation of Foreign Employees of Public International 
     Organizations, done at Washington on April 21, 1994, to the 
     Hong Kong Economic and Trade Offices.
       (c) Definition.--The term ``Hong Kong Economic and Trade 
     Offices'' refers to Hong Kong's official economic and trade 
     missions in the United States.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Nebraska [Mr. Bereuter] and the gentleman from American Samoa [Mr. 
Faleomavaega] each will control 20 minutes.
  The Chair recognizes the gentleman from Nebraska [Mr. Bereuter].
  Mr. BEREUTER. Mr. Speaker, I yield such time as he may consume first 
to the gentleman from New York [Mr. Gilman], chairman of the Committee 
on International Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, I am pleased to rise in strong support of the measure 
before us this afternoon, S. 342, a bill extending certain privileges, 
exemptions, and immunities to Hong Kong's economic and trade offices 
after the reversion of Hong Kong to China. These Hong Kong offices are 
presently part of the British Embassy and its consulates, and while 
Hong Kong will revert to Chinese sovereignty on June 30 of this year, 
United States policy is to treat it as an autonomous entity for trade 
and economic purposes.
  The enactment of this measure will ensure that its economic and trade 
offices will not fall under the auspices of the Chinese Embassy and 
will be given the necessary privileges and status to enable them to 
continue functioning independently.
  This bill does not provide diplomatic or consular privileges and 
immunities from the trade officials in these offices. Rather, it 
ensures that they would be eligible for the same status as that 
accorded other international organizations. Most importantly, it 
provides the core protections that the trade and economic offices need 
to perform their functions in the United States.
  Mr. Speaker, I want to compliment the gentleman from Nebraska [Mr. 
Bereuter], the distinguished chairman of the Subcommittee on Asia and 
the Pacific, for his leadership in bringing this measure before the 
House today and in ensuring that we continue to accord a high priority 
in our policies toward Hong Kong.
  Notwithstanding my support for this resolution, let us recognize that 
Hong Kong lost its autonomy when Beijing declared that the elected 
legislature is going to be replaced by one appointed by Beijing. There 
will be no freedom or autonomy in Hong Kong if Beijing nullifies the 
ordinances protecting individual rights. Hong Kong's trade offices will 
just be an extension of government in Beijing unless the people of Hong 
Kong can elect their own representatives and if there are laws that 
will enshrine their rights. Accordingly, Mr. Speaker, I urge prompt 
adoption of this measure.
  (Mr. FALEOMAVAEGA asked and was given permission to revise and extend 
his remarks.)
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.

[[Page H3821]]

  I want to commend the gentleman from Nebraska [Mr. Bereuter], my good 
friend and the chairman of the Committee on International Relations 
Subcommittee on Asia and the Pacific, who is the chief sponsor of this 
legislation, and certainly the gentleman from New York [Mr. Gilman], 
chairman of the full House Committee on International Relations, for 
their presence and their statements.
  Mr. Speaker, I rise in strong support of this bill. As it is now, the 
bill is identical to the one section of H.R. 750 which was adopted by 
this body earlier this year. If this bill does not become law by July 
1, Hong Kong's representation in the United States will reverse to 
Chinese control in 2 weeks and will have to be handled by the Chinese 
Embassy, and I find that a very unlikely and an untenable situation, 
Mr. Speaker. This is clearly contrary to the attempt of the U.S.-Hong 
Kong Policy Act of 1992, which stipulates that the United States should 
treat Hong Kong, after reversion, as an entity distinct from the 
People's Republic of China.
  Now, it would also be contrary to the hope shared by every one of us 
in this body, Mr. Speaker, that Hong Kong will retain most of its 
separate identity and distinctiveness after June 30. The administration 
originally asked for this bill and now strongly supports it. I call 
upon my colleagues to indicate their support for this bill, and I urge 
the adoption.
  Again, I thank the gentleman from Nebraska [Mr. Bereuter] for 
bringing this matter up for consideration by the floor.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank the gentleman from New York [Mr. Gilman], the 
distinguished chairman of the Committee on International Relations, and 
the gentleman from American Samoa [Mr. Faleomavaega] for their 
statements.
  This bill allows the President to extend certain privileges, 
exemptions, and immunities to the Hong Kong economic and trade offices 
of the United States, and there have been three and there will continue 
to be three.
  Specifically, the bill allows the President to extend: First 
authority to contract to acquire property; second, property immunity 
from search and confiscation; third, an exemption from custom duties; 
fourth, exemptions from Federal, State and local income taxes; and, 
fifth, legal protection for official communications. This replicates 
what is in place now for Hong Kong in its current status.
  The legislation, as indicated by the gentleman from American Samoa, 
is necessary to ensure that the Hong Kong civil servants working in the 
Hong Kong economic and trade offices throughout the United States 
continue to have the same privileges, exemptions, and immunities after 
Hong Kong's reversion to China on midnight on June 30, 1997.
  Hong Kong's civil servants currently have these privileges, 
exemptions, and immunities under a United States agreement with the 
United Kingdom. This arrangement, of course, also expires at midnight 
on June 30, 1997.
  The State Department has negotiated a new agreement which essentially 
gives Hong Kong civil servants a basket of privileges, exemptions, and 
immunities which are roughly equal to that accorded Taiwan civil 
servants working in the United States. This agreement with the Hong 
Kong Special Administrative Region must be authorized by Congress and 
S. 342 does just that.
  The Senate passed this noncontroversial legislation under unanimous 
consent on May 20, 1997. The House previously considered this exact 
legislation, as the gentleman from American Samoa mentioned, as a part 
of a larger bill, H.R. 750, authored by this gentleman, the Hong Kong 
Reversion Act, on March 11, 1997. So this legislation has been acted 
upon by the House as a part of a larger bill. That bill at the time 
passed on a rollcall vote by 416 to 1 under suspension of the rules.
  Mr. Speaker, in concluding, the Congressional Budget Office estimates 
that S. 342 would result in no significant cost to the Federal 
Government. CBO states that the bill contains no intergovernmental or 
private sector mandates and would not impose any cost on State, local 
or tribal governments. My colleagues have heard indicated that the 
administration is supportive of the legislation. Mr. Speaker, I urge my 
colleagues to vote in support of S. 342.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may 
consume.
  As my good friend from Nebraska stated earlier, the administration 
fully supports this legislation. I would like to note that the 
gentleman from Indiana [Mr. Hamilton], the senior ranking member of the 
House Committee on International Relations, is necessarily absent and I 
know he would have loved to add his commentary to the dialog this 
afternoon.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BERMAN. Mr. Speaker, I rise in support of S. 342. This is an 
important and necessary piece of legislation introduced with bipartisan 
support at the behest of the administration to help preserve the 
special status now enjoyed by the representatives of Hong Kong in the 
United States after the reversion of Hong Kong to the People's Republic 
of China on July 1.
  When the Congress passed the Hong Kong Policy Act in 1992, it was 
recognized that the reversion of Hong Kong to China under the concept 
of one country, two systems would require a special effort by the 
United States to assist in preserving Hong Kong's unique liberties and 
trading relations with the rest of the world.
  Most recently, the Congress passed the Hong Kong Reversion Act--H.R. 
750--at the instigation of the chairman of the Asia and Pacific 
Subcommittee, Mr. Bereuter, which I cosponsored. H.R. 750 contained a 
provision identical to that passed by the Senate in S.R. 342.
  Unfortunately, the Senate has not yet acted on the other important 
provisions contained in H.R. 750 which extended the Congress and the 
administration's responsibilities to act as a ``watch dog'' over Hong 
Kong's liberties.
  There can be no doubt that this will be an increasing subject of 
debate after Hong Kong's reversion. I was disappointed by actions 
already taken by the Hong Kong provisional legislature selected by 
Chinese authorities to restrict basic freedoms after July 1.
  The decision of the Standing Committee of the National People's 
Congress of the People's Republic of China to repeal sections of the 
Hong Kong Bill of Rights Ordinance because they allegedly are in 
contravention of the Basic Law was deeply disturbing. The National 
People's Congress not only repealed a key section of the Bill of Rights 
Ordinance but also critical ordinances referred to in the Consultation 
Document: the Public Order Ordinance and the Societies Ordinance.
  Curtailing the rights of assembly, giving the police new powers to 
ban public demonstrations, and restricting the right of access of Hong 
Kong political organizations to ideas and resources from abroad places 
in a legal straitjacket the basic right of assembly and association 
which were enshrined in article 27 of the Basic Law. Actions to 
restrict the rights of assembly and protest are major steps toward 
denying Hong Kong's citizens basic human rights.
  The decision to place severe restraints on these freedoms because of 
exaggerated incidents of public abuse and by claims that Hong Kong ``is 
extremely vulnerable to external forces'' were not justified in my 
opinion by any internal event or foreign threat. Giving the power to 
appointed officials to ban any organization `'in the interest of 
national security'' is an open invitation to capricious decisions. 
Moreover, any limits on jurisdiction of the Court of Final Appeals in 
these matters could deny Hong Kong citizens the right of judicial 
review.
  I fear that the message being sent to the people of Hong Kong and to 
the international community is that the rule of law in Hong Kong will 
be bent and molded to suit the needs of Hong Kong's new sovereigns 
regardless of the international commitments to maintain human rights 
contained in the Sino-British Joint Declaration and the Basic Law.
  What threatens Hong Kong's national security and stability are not 
threats from democracy and respect for individual freedom but threats 
from those who wish to constrain the free flow of ideas.
  I encourage my colleagues to vote in favor of S. 342. This is an 
important first step in efforts to preserve Hong Kong's unique 
economic, cultural, and political status.
  Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Nebraska [Mr. Bereuter] that the House suspend the rules 
and pass the Senate bill, S. 342.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill was passed.

[[Page H3822]]

  A motion to reconsider was laid on the table.

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